Breaking News: Coinbase sued over XRP sales
Coinbase, one of the largest US cryptocurrency exchanges, has been sued over XRP sales. The lawsuit was filed in a Northern California federal court. The lawsuit says Coinbase is seeking the return of commissions it received through XRP sales.
XRP lawsuit filed against Coinbase
According to information shared by Stephen Palley, a partner at the law firm Anderson Kill, the lawsuit filed in a California federal court is basically based on a violation of unfair competition law. Plaintiff Thomas C. Sandoval alleges that Coinbase violated unfair competition law by selling XRP, which is alleged to be Securities, and obtained commissions from the sales.
Following an SEC lawsuit filed against Ripple last week, Coinbase soon suspended XRP trading for U.S. users. With the news of the lawsuit, many people think it’s a step from the SEC front, but the initiative stands out as an individual case.
Will the case affect Coinbase?
The plaintiff alleges that Coinbase sold XRP even though it knew that XRP was Securities. Coinbase knew of Ripple executives ‘ statements and was aware that XRP was a securities, not a commodity, the plaintiff’s claim said. Lawyer Stephen Palley stressed this was a weak argument against Coinbase.
Larry Cermak of The Block team made a similar statement, stating that he did not have expertise on the subject. Cermak said he “didn’t think it mattered” that the case against the stock market was a big one.
Some people reacting to the lawsuit have suggested that Coinbase cannot be accused of “illegally selling securities” while the lawsuit between the SEC and Ripple has not been settled.